The City of Troy has submitted its annual financial report on time.
The report was submitted on Monday and presented to the city council Wednesday night. Completed by BST & Co. over the course of a month, it was prepared using “trial balances” shared by the city to correct entries and close the books.
Troy’s financial report is composed of funds like the general fund balance, special grants, water, sewer, debt services, refuse and garbage, and supplemental schedules like bank reconciliations, bond repayments, and employee and retiree benefits.
Brendan Kennedy, an accountant with BST & Co, says 2024’s efforts to close the books were smooth, as opposed to 2023’s – when the city’s accounting was mismanaged following the departure of the longtime comptroller and the departure of the replacement comptroller. A former outside accounting firm submitted an incorrect report to the state last year. It was later pulled by the city.
“‘23 was particularly difficult because there was a significant amount of work that had to be undone or figured out, and then figure out the proper way that the folks here at the city of Troy,” he said. “OK, so then we submitted a revised AFR in November, again based on available known facts and circumstances. We were still in the middle of the audit process, and quite frankly, we totally weren't done, but we needed to have at least something filed with OSC.”
Kennedy says the 2023 audit was approved by the state comptroller, opening the path to complete 2024. Kennedy spoke to the council alongside Republican Mayor Carmella Mantello and members of her administration, saying amounts filed in the AFR could change.
“It's possible data may come in that could change the way we looked at things and change the way we want to report things,” Kennedy said.
Kennedy says $11.5 million of variances in revenue include federal and state grants that were not budgeted for. Providing sewer, garbage, and other services, the city has a lot to keep in order. Public safety, often the city’s largest budget line, was underbudgeted in 2024 by more than $3 million, mostly due to personnel.
Mantello says with the city’s current but outdated accounting system, KVS, the finance department is working as fast and accurately as it can while implementing a new system and searching for the administration’s third comptroller.
“We are financially strong. Our bond rating’s strong. We knew and know the monies in the bank. We see the statements, etc,” Mantello said. “However, to be where we are now in terms of the accounting of that definitely a sigh of relief.”
Council President Sue Steele, a Democrat, has been calling for the return of quarterly financial reports for more than a year. The three-month reports are called for in the charter.
“The annual financial report has been filed with the state comptroller, as it is supposed to be done. Is that a high bar? I don't really think so, but I'm taking it as good news, and I'm hoping that we're going to progress forward,” Steele said.
Kennedy says with the implementation of Tyler Technologies, an updated accounting software, monthly reports could be possible, if needed. Steele says she is debating introducing legislation that would require a change in the charter.
Kennedy suggested changes to the garbage fee, which was implemented in 2017 by the last mayor and meant to be a temporary cost to residents. Mantello has pledged to end the fee, which continues to grow, but has yet to do so.
The report now goes to the state comptroller for review.
BST & Co. says it’s available to answer any questions or make changes suggested by the state and expects a smoother, timelier audit next time.
A first quarter report is expected to be delivered to the council by the end of May.
